The Excess Demand Theory of Money

Bernie Kehrwald

MPRA Paper from University Library of Munich, Germany

Abstract: This paper introduces a new monetary theory. A simple model is described in which a central bank sets the interest rate in a way that the excess demand for credits equals the preferred amount of money. It is compatible with the Keynesian liquidity preference theory and the neoclassical loanable funds theory and can be used to explain a series of phenomena. It is very suitable for introductory textbooks.

Keywords: money; interest rate; credit; central bank; savings; investments (search for similar items in EconPapers)
JEL-codes: E40 E50 E51 (search for similar items in EconPapers)
Date: 2014-07-27
New Economics Papers: this item is included in nep-cba, nep-hpe, nep-mac, nep-mon and nep-pke
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https://mpra.ub.uni-muenchen.de/57603/1/MPRA_paper_57603.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/61744/9/MPRA_paper_61744.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/65798/9/MPRA_paper_61744.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/65800/18/MPRA_paper_65800.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/70878/26/MPRA_paper_70878.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/70880/28/MPRA_paper_70880.pdf revised version (application/pdf)

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